Published: November 25, 2021
Last Updated: December 1, 2021
David Rotfleisch, a tax lawyer with Rotfleisch & Samulovitch P.C. in Toronto, was recently interviewed for an article in Investmentexecutive.com about tax and cryptocurrencies in Canada.
Rotfleisch explains that while none of the tax aspects surrounding cryptocurrency is straightforward, coin-to-coin trades are particularly complicated. Some people sell, say, Bitcoin to buy Ethereum and then dispose of the Ethereum to acquire Cardano, he explained. Thus, there is a need to record every transaction with the U.S. dollar amounts being converted to Canadian dollars. Taxpayers would also need to be able to appropriately report gains and losses at the end of the year.
“Record-keeping is a massive problem for a lot of these guys,” Rotfleish said. “So sometimes a large part of our job is helping the clients to reconstruct their trading history records.”
Click the link to read the full article
Disclaimer:
"This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal advice nor can it or should it be relied upon. All tax situations are specific to their facts and will differ from the situations in the articles. If you have specific legal questions you should consult a lawyer."
